Actrade Settlement Nixed Over CEO's Alleged Pilfering

Law360, New York (January 26, 2010, 5:25 PM EST) -- A federal judge has affirmed a bankruptcy court's rejection of a securities class action settlement involving defunct corporate receivables trading company Actrade Financial Technologies Ltd. in light of new allegations that the company's former CEO looted $31.6 million in previously hidden funds.

Judge Richard M. Berman of the U.S. District Court for the Southern District of New York ruled Friday that a bankruptcy court acted within its discretion when it found the settlement was no longer fair and equitable.